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Tuesday, September 26, 2006

$18 billion for web advertising

A market research conducted and released these days by Interactive Advertising Bureau and PricewaterhouseCoopers reveals that this year (2006) the money spent for online advertising is going to be around the incredible number of $18 billion.

What grabbed our attention in this study is the fact that it went out in a moment when Yahoo! announced weakness in advertising revenues from automobile and financial firms, two key sectors in marketing.

Money earned from Internet advertising is crucial for many top internet companies including Google. In one of our postings few days ago, we pointed out that Yahoo’s decline in ad revenues might not be victory for Google’s ad earnings and in our vision it might have been caused by a large number of small to mid level contextual players entering the web arena.

Our big question today is: how much of the money meant to be spent this year for online advertising will go for contextual ads?